Following are the income statement and balance sheet of Seagate Technology for fiscal 2019. a. Prepare a preliminary forecast of the companys income statement and balance sheet for the fiscal year 2020, ended in June 2020, using the following assumptions, which are expressed as a percentage of revenue unless otherwise indicated. Note: You need to create a new account, Short-term investment or Short-term debt, as the plug account to balance the forecasted balance sheet. Make a no change assumption for any account that is not mentioned in the following assumptions. Round your forecasted numbers to the nearest dollar.

Assume that revenue will grow by 5%, and the effective tax rate will be 21%. Assume the income statement account, Restructuring and other, net, is a non-recurring item. Forecast no change in the following income statement accounts: Amortization of intangibles, Interest income, Interest expense, and Other, net. Forecast no change in the following balance sheet accounts: Goodwill, Long-term accrued income taxes, Long-term debt less current portion, Ordinary shares, and Accumulated other comprehensive loss. Assume that in 2020, CAPEX will be 5.8% of revenue, and depreciation expense will be 5.4% of Property, equipment and leasehold improvements, gross at the start of the year, which was $9,835 million. Assume that in 2020, the company awards $99 million of stock-based compensation, which increases Additional paid-in capital by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year.

The company has a dividend payout ratio of 35.4% of net income.

b. What does the forecasted adjustment to balance the balance sheet from part a reveal to us about the company's financing needs? What is the implication for the revised forecasting step? (Maximum words: 50)

SEAGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019 ($ millions) Revenue... Cost of revenue ... Product development. Marketing and administrative . Amortization of intangibles.. Restructuring and other, net. Total operating expenses.. Income from operations .. Interest income. Interest expense. Other, net ... Other expense, net.. Income before income taxes .... (Benefit) provision for income taxes. Net income. $10,390 7,458 991 453 23 (22) 8,903 1,487 84 (224) 25 (115) 1,372 (640) $ 2,012 SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 ($ millions) Current assets Cash and cash equivalents. Accounts receivable, net.. Inventories Other current assets Total current assets Property, equipment and leasehold improvements, net. Goodwill Other intangible assets, net Deferred income taxes Other assets, net $2,220 989 970 184 4.363 1,869 1.237 111 1.114 191 Total assets $8.885 $1,420 169 91 552 Current liabilities Accounts payable Accrued employee compensation. Accrued warranty Accrued expenses Total current liabilities. Long-term accrued warranty. Long-term accrued income taxes. Other noncurrent liabilities .. Long-term debt, less current portion. Total liabilities... Shareholders' equity 2,232 104 4 130 4,253 6,723 Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively.. Additional paid-in capital... Accumulated other comprehensive loss.. Accumulated deficit ... Total shareholders' equity Total liabilities and shareholders' equity... 6,545 (34) (4,349) 2,162 $8,885